News release

 Zi Corporation


NEWS RELEASE for October 3, 2002

Zi Corporation Comments on Sale of Magic Lantern Group of Companies; Provides Update on Letter of Intent to Sell Zi Services Division


CALGARY, ALBERTA (October 3, 2002) . . . Zi Corporation (Nasdaq NM:ZICA, TSX:ZIC) said today that it has been informed by JKC Group Inc. ("JKC") (AMEX:JKC) that JKC will soon file a revised preliminary proxy statement for a special meeting of its shareholders called to consider JKC's previously announced acquisition of the Magic Lantern Group of companies from Zi. The filing responds to ordinary course comments provided by the Securities and Exchange Commission (SEC). The filing reflects JKC's decision to reschedule its shareholders' meeting for November 8, 2002 to provide adequate time for their consideration and voting on the proposals. Zi also announced that the outside closing date under its stock purchase agreement with JKC has been extended to accommodate the rescheduling.

Zi also said that it hasn't yet reached a definite agreement to sell its Hong Kong-based telecom technology unit, known as the Zi Services division, to an Over-the-Counter Bulletin Board traded company. Although Zi continues to work towards a sale of Zi Services, its previously announced letter of intent will terminate, unless extended by the parties, in the event a transaction is not completed by October 31, 2002. The letter of intent, which was announced in early July of this year, provided for such termination with no penalties of breakup fees.

About Zi Corporation

Zi Corporation (www.zicorp.com) is a market-driven technology company delivering intelligent interface solutions to enhance the user experience of wireless and consumer technologies. The company's core technology product, eZiText® connects people to short messaging, e-mail, e-commerce, Web browsing and similar applications in more than 35 languages and regional dialects. Zi supports its strategic partners from offices in Calgary, Beijing, Hong Kong, London, San Francisco, Shenzhen and Stockholm. A publicly traded company, Zi Corporation is listed on the Nasdaq National Market (ZICA) and the Toronto Stock Exchange (ZIC).

Certain statements in this press release that involve expectations or intentions (such as those relating to future deployments or planned cooperation) may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The information in this press release is based on Zi Corporation's current expectations and assumptions, and is subject to a number of risks and uncertainties that could cause actual results to differ materially from those anticipated. Such risks include, among others, general business and economic conditions, competitive actions, continued acceptance of Zi Corporation's products and services and dependence on third party performance as well as the risks and uncertainties referred to in Zi Corporation's 20-F for the most recent calendar year that is filed with the Securities and Exchange Commission. The reader should not place undue reliance on such forward- looking statements. Zi Corporation does not assume any obligation to update such forward-looking statements.

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For further information please contact:

Allen & Caron Inc.
Jill Bertotti (investors)
jill@allencaron.com
Len Hall (Business/Financial media)
len@allencaron.com
949-474-4300
 Zi Corporation
Dale Kearns
Chief Financial Officer
investor@zicorp.com
403-233-8875
 FitzGerald Communications
Fred Bateman (media)
fbateman@fitzgerald.com
415-677-0208

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